Requirements to become an Angel
As we support our companies to do amazing things, it is appropriate that our members should also be able to demonstrate a skill set or experience that can be leveraged. Generally this would mean a solid track record of managing and building successful companies, either as an entrepreneur or operating executive. However, as the spectrum of our membership demonstrates, your unique skills may have been developed from sectors as diverse as medicine, law or fine arts.
For some of our members, Fronesyz Angels was their introduction to angel investing, many others were already seasoned early-stage investors. If you fall into the first category, it is important to demonstrate some appreciation for early-stage companies. This could be as a successful entrepreneur or through experience evaluating companies, or maybe by mentoring start-ups.
Investing in early-stage companies is very different from managing investments as part of a corporate portfolio (although those skill sets are certainly transferable). Consequently it would be very helpful if you can demonstrate some level of investment or support for at least one early stage venture over the course of the past 12 months.
Not only must applicants be Accredited Investors, we want them to understand the inherent risks involved in angel investing. Research by the Angel Capital Association found that 52% of angel funded businesses fail meaning that investors probably lost all of their investment. It is also recognized that even successful investments will not pay the investor back for 8-10 years.
Both our membership and our portfolio company founder composition are well-diversified on the gender, ethnicity, socioeconomic and other relevant fronts. We welcome applications from all suitably qualified candidates.
One of the areas in which we can best support our portfolio companies is through introductions, either for business advice, hiring, or sales opportunities. We expect our members to have extensive peer networks and we encourage their use for the benefit of the group.
The vibrancy of Fronesyz Angels lies in the energy of its members. Consequently we expect new members to get involved and dedicate time to Fronesyz Angels activities. This would include: attending screening sessions, taking an active role in due diligence and identifying investment opportunities. There are also a number of Committees and Special Interest Groups where members with specific skills or interests collaborate.
For the past three years Fronesyz Angels has invested at a rate in excess of $1M per month. This level of investment is only possible with members willing to write checks (as well as a flow of great companies). Consequently we require our members to invest at least $50,000 and to participate in at least one Fronesyz Angel investment per year.
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